POSCO Holdings Dividends and Buybacks
Dividend criteria checks 3/6
POSCO Holdings is a dividend paying company with a current yield of 1.87% that is well covered by earnings.
Key information
1.9%
Dividend yield
0%
Buyback Yield
| Total Shareholder Yield | 1.9% |
| Future Dividend Yield | 2.2% |
| Dividend Growth | 4.7% |
| Next dividend pay date | n/a |
| Ex dividend date | n/a |
| Dividend per share | n/a |
| Payout ratio | 69% |
Recent dividend and buyback updates
Recent updates
Seeking Alpha • May 05
POSCO Holdings: Solid Performance And Favorable Prospects
Summary I maintain my "Buy" rating for POSCO after analyzing its above-expectations results and positive financial outlook. PKX's 1Q2026 EBIT rose 24.3% YoY and beat the consensus by 20.3%, thanks to the outperformance of its battery materials and infrastructure units. I am predicting another substantial growth in its operating income for full-year FY2026; the key lies with the steel business' likely financial improvement driven by price hikes and asset rationalization. Read the full article on Seeking AlphaSeeking Alpha • Mar 02
POSCO Holdings: A Value Stock With Consistent Profitability
Summary POSCO Holdings is undervalued, trading at less than half its tangible book value, despite consistent profitability and a strong balance sheet. The company maintains profitability during difficult steel markets through diversification, with significant potential in its battery materials business. POSCO believes it is past the worst of this steel down cycle, with expected earnings improvement in 2025 and potential growth from cost-cutting and new duties on Chinese steel. POSCO returns 50% to 60% of free cash flow to shareholders through dividends and buybacks. Read the full article on Seeking AlphaSeeking Alpha • Nov 01
POSCO: Look Past Q3 Earnings Miss
Summary POSCO Holdings' Q3 2024 bottom line fell short of expectations, but I think investors should focus on the stock's future prospects and valuation re-rating potential. The stock is currently trading at a mid-single-digit forward EV/EBITDA ratio and below 0.5 times P/B. The potential re-rating catalysts for PKX include a fourth-quarter earnings turnaround and the successful conclusion of its portfolio restructuring exercise by 2026. I maintain my Buy rating for POSCO Holdings, as the stock is cheap with potential catalysts. Read the full article on Seeking AlphaSeeking Alpha • Jul 16
POSCO: Yield Play With Long-Term Growth Potential (Rating Upgrade)
Summary My rating for POSCO Holdings is raised to a Buy. PKX is an attractive investment candidate offering both an enticing shareholder yield and favorable growth prospects for its battery materials business. I estimate that the stock boasts a potential mid-single digit percentage shareholder yield for 2024, after assessing its recent treasury stock cancellation announcement. The company has set a goal of expanding its battery materials unit's top line by a CAGR of +32% for the coming three years. Read the full article on Seeking AlphaSeeking Alpha • May 01
POSCO Holdings: Operating Income Recovery Overshadowed By Cautious Capex Outlook
Summary POSCO Holdings' operating profit for Q1 2024 increased by 92% QoQ, as its steel, battery materials, and energy businesses performed well. But PKX's actual capital expenditures for full-year 2024 might turn out to be below its initial KRW10.8 trillion target, which has negative read-throughs for its business outlook. The recovery in first quarter operating income for PKX has been overshadowed by management's cautious view on 2024 capital expenditures, so I have maintained a Hold rating. Read the full article on Seeking AlphaSeeking Alpha • Feb 02
POSCO Holdings: Q4 Operating Profit Was Below Expectations (Rating Downgrade)
Summary POSCO Holdings' operating income fell by -75% in Q4 2023 on a QoQ basis, and its actual fourth quarter operating profit fell short of the consensus forecast by -44%. But PKX's shares could still benefit from a positive re-rating in the medium term with catalysts associated with the battery materials business and shareholder capital return. I downgrade my rating for POSCO Holdings from a Buy to a Hold, considering PKX's short-term outlook, potential medium-term catalysts, and its current valuations. Read the full article on Seeking AlphaSeeking Alpha • Nov 15
POSCO Holdings: Sell Or Short The Stock, A Bearish Trend Is On
Summary POSCO Holdings has experienced significant growth since converting to a holding company structure in 2022. PKX's shares have been dropping since hitting a 52-week high, indicating a potential bearish trajectory. The market has had mixed reactions to the company’s developments, and its over-ambitious plans may hurt its long-term growth. Based on my technical analysis, I recommend selling this stock or initiating short positions. Read the full article on Seeking AlphaSeeking Alpha • Aug 31
POSCO Holdings Still Has Legs To Run
Summary POSCO Holdings Inc. shares have performed well in recent times, but its current valuations are still undemanding. POSCO Holdings' plans to increase its operating earnings contribution from the company's battery materials business might be the key driver of valuation multiple expansion for the stock. I maintain a Buy rating for POSCO Holdings as I think that the company's shares have the potential to rise further. Read the full article on Seeking AlphaSeeking Alpha • Jun 16
POSCO: Watch Shareholder Capital Return And Investor Relations Plans
Summary POSCO Holdings' mid-term shareholder capital return outlook has become more favorable with the introduction of a minimum absolute dividend payment for the 2023-2025 period. There is the potential for the stock price of POSCO International, PKX's key listed subsidiary, to rise going forward with a step-up in investor relations activities. I continue to be bullish on POSCO Holdings, considering the company's new capital return plan and the potential increase in POSCO International's share price. Read the full article on Seeking AlphaSeeking Alpha • Jan 19
POSCO: 2 Key Catalysts To Watch
Summary The first catalyst for PKX is the potential issuance of favorable financial guidance for Q1 2023 when the company reports Q4 2022 earnings in the following week. The second potential catalyst is the narrowing of the conglomerate discount assigned to POSCO Holdings' shares following the merger of its subsidiaries, POSCO Energy and POSCO International. I think that PKX deserves a Buy, rather than Hold, rating now after taking into account these two catalysts. Elevator Pitch My investment rating for POSCO Holdings Inc.'s (PKX) [005490:KS] shares is a Buy. With my prior write-up for PKX published on September 1, 2022, I discussed the company's expected financial performance for the second half of 2022 and its recent corporate developments. My attention turns to POSCO Holdings' potential catalysts such as a business recovery in the first quarter of the current year and a narrowing of the conglomerate valuation discount for its shares in this latest article. I upgrade my rating for PKX from a Hold earlier to a Buy now, in view of the re-rating potential for its shares. Look Beyond Q4 2022 And Focus On Q1 2023 PKX is expected to report the company's Q4 2022 financial results next week on January 27, 2023. POSCO Holdings' financial performance in the final quarter of the previous year should be poor, but investors are most probably going to focus on PKX's positive Q1 2023 guidance instead. As per the market's consensus forecasts taken from S&P Capital IQ, the analysts see POSCO Holdings announcing a substantially lower Q4 2022 top line and bottom line next Friday. Specifically, the sell-side estimates that PKX's revenue and normalized net profit will decrease by -17.2% YoY and -86.7% YoY to KRW9,545 billion and KRW143 billion, respectively in Q4 2022. It is reasonable that sell-side analysts have an unfavorable view of PKX's financial performance for the last quarter of the prior year. In Q4 2022, the company is very likely to have been negatively impacted by steel price weakness and the suspension of production at its steel mill in Pohang resulting from typhoons. But POSCO Holdings should experience a substantial turnaround in the first quarter of the current year. PKX's Pohang steel mill is expected to be up and running again in 2023; while the company is increasing its hot rolled steel price for January as reported by Korean media earlier. The sell-side predicts that POSCO Holdings' top line and bottom line will expand by +42.1% and +149.3% to KRW11,055 billion and KRW693 billion, respectively in YoY terms for Q1 2023. I am of the view that POSCO Holdings will issue positive Q1 2023 guidance when it discloses its Q4 2022 financial results in late-January. This should be one of the key catalysts to re-rate PKX's stock price and valuations. Completion Of The POSCO International-POSCO Energy Merger On January 4, 2023, POSCO Holdings disclosed in a 6-K filing that POSCO Energy will no longer be a subsidiary of the company. This is because POSCO Energy has been successfully merged into another one of PKX's subsidiary, POSCO International. In my opinion, this is the other major re-rating catalyst for POSCO Holdings. A stock typically suffers from a conglomerate or holding company discount, if it owns and operates multiple, unrelated businesses that have limited synergies with each other. According to valuation data sourced from S&P Capital IQ, POSCO Holdings has never traded above 0.75 times price-to-book or P/B in the past decade. This supports my view that a hefty conglomerate discount is one of the key factors responsible for PKX's depressed valuations. With the completion of the merger between POSCO Energy and POSCO International, PKX's corporate structure has become leaner with one less subsidiary. More significantly, POSCO Holdings has shown that it is able to exploit synergies between the two former subsidiaries with this recent merger. PKX had guided at a media conference in early-January 2023 that the merged entity will benefit from improved profitability and reduced financial leverage. Specifically, the combined EBITDA for POSCO International and POSCO Energy is projected to rise by more than +30% to KRW1.7 trillion in 2023, and the aggregate debt-to-equity ratio for the combined company will be lowered from 2.0 times to 1.6 times. Also, PKX is sending a strong message that it is serious about making the new POSCO International a bigger success than it was prior to the merger with POSCO Energy. One thing to note is that POSCO Holdings has made a key change to the management team of the new POSCO International. A December 29, 2022 The Korea Times news article noted that Jeong Tak, who has built a reputation with his "sales and marketing" capabilities within the POSCO group of companies, has been tasked with the role of leading the new POSCO International as its Chief Executive Officer.Seeking Alpha • Nov 10
POSCO: Maintaining Our Rating Given Headwinds
Summary POSCO's recent earnings does not change our view on the stock and our ratings. Currency decline and persistent inflation are risks that are impacting the company's margins and bottom line. Uncertainties on the economy persist, and the global demand for steel products appears to be declining. We maintain our "HOLD" rating as we await for clearer economic data. Maintaining Our Rating We initiated a "HOLD" rating for POSCO Holdings (PKX) on September 1st, due to macroeconomic and labor-related headwinds. Since then POSCO Holdings has performed considerably well, returning 7.32% since our publication, which far outpaced S&P 500's decline of -4.78% during that same time frame. Despite that, we believe the aforementioned headwinds are still relevant, but we see increased headwinds from a slowdown in the economy as well as demand for steel. Given the uncertain macroeconomic picture, we reiterate our "HOLD" rating as of this time. Recent Earnings POSCO Holdings reported a drop in operating profit by 71% on a YoY basis, as management cited price drops and losses arising from flooding in September. However, the company was able to report a marginal YoY increase in its top line and the company attributed this increase to price increases in some of its units. Nevertheless, the company's profit margin even excluding the impact of the flood has been on a downward trend, as seen by a 10%+ increase in the cost of revenue on a YoY basis. The company's management also provided expectations that demand will be "weak" in the "first half of next year" as a result of economic factors. Worsening Currency Picture Since the time of our writing, the Korean Won has depreciated even further, currently trading at 1,360 KRW compared to the U.S. dollar. This metric is substantially down from ~1,430 KRW range just a month ago, and such deterioration confirms our view that there's currency risk in the stock. The weakening won will translate to higher input costs (raw materials) as well as higher labor costs due to the inflation. Though a weaker currency would then favor exports, as we will get to below, we believe that the company will also see headwinds in the global demand of its finished steel products. As a result, we believe higher input costs as a result of a weakening currency and inflationary pressures domestically will lead to compressed margins and impact the company's prospects. Weak Steel DemandSeeking Alpha • Sep 01
POSCO: Spotlight On Corporate Actions And Business Outlook
Summary I am positive on POSCO's recent two corporate actions, namely the planned merger of two of its subsidiaries, and the cancellation of treasury shares. But my view of PKX's 2H 2022 outlook is negative, considering expectations of slower top line growth and a larger earnings drop for the company in 2H 2022. I retain my Hold rating for POSCO, taking into account both the company's recent corporate actions and its outlook for the second half of the year. Elevator Pitch I continue to rate POSCO Holdings Inc.'s (PKX) [005490:KS] stock as a Hold. I touched on PKX's diversification efforts in expanding the company's non-steel businesses in my previous June 20, 2022 update for the stock. With this current article, I write about POSCO's corporate actions and business outlook. On one hand, the planned merger of POSCO Energy and POSCO International will aid PKX's business diversification efforts, while its recent treasury share cancellation sends a strong signal about POSCO Holdings' commitment towards shareholder capital return. On the other hand, PKX's 2H 2022 business outlook is unfavorable, with the expected decline in steel prices being a key headwind. Considering both the positives and negatives associated with the stock, I choose to maintain a Neutral view or Hold rating for POSCO Holdings. Proposed Merger Of The Company's Two Business Subsidiaries Korean news publication The Korea Times reported on August 12, 2022, that POSCO Holdings' "trading arm, POSCO International" is merging "with its power generation unit, POSCO Energy." As it stands now, POSCO Holdings owns 89.0% and 62.9% of the outstanding shares of POSCO Energy and POSCO International, respectively. Assuming that the merger between POSCO International and POSCO Energy is completed as planned in January 2023, POSCO Holdings will then have a 70.7% equity stake in the merged entity, the "new" POSCO International. This specific corporate action will have a positive impact on POSCO Holdings' plans to diversify beyond its core steel business. In my prior June 20, 2022 article for PKX, I highlighted that POSCO Holdings' goal is to have "the non-steel businesses" contributing "half (versus 20% currently) of the company's operating profit by 2030." The proposed merger between POSCO Energy and POSCO International is expected to boost POSCO Holdings' efforts to grow in the area of LNG or Liquefied Natural Gas. According to its corporate website, POSCO Energy operates the "first independent LNG terminal" (Gwangyang LNG Terminal) in South Korea, and it boasts a "LNG Combined Cycle Power Generation" capacity of 3,412 MW. On the other hand, POSCO International notes on the company's website that it is "consistently expanding its business across the Gas value chain, including liquefaction plants, LNG trading, bunkering, receiving terminals, pipelines, and Independent Power Producers (IPPs)." In other words, there are good reasons for POSCO International to create an integrated LNG company by bringing its two LNG-related business subsidiaries together via a merger. Besides business diversification, shareholder capital return is another critical issue that investors are focused on. I highlight a key recent corporate action initiated by POSCO Holdings relating to capital return in the next section of this article. Treasury Share Cancellation An August 12, 2022 news article published by Yonhap News Agency mentioned that POSCO Holdings "has decided to cancel 672 billion won (US$517 million) worth of its stocks", or specifically "2.61 million treasury shares" which "represent about 3 percent of its total stock issued." This specific corporate action is significant for three key reasons. Firstly, it isn't the usual practice for Korean listed companies to cancel their treasury shares following share repurchases. Based on a May 7, 2017 Yonhap News Agency news commentary, "treasury share cancellations by listed manufacturing companies" in South Korea merely represented "2.3 percent of stock buybacks, resales and retirement" based on a study of "7,428 manufacturing companies" in the 2004-2015 period. This implies that PKX's move to cancel treasury shares and reduce the company's share count as part of shareholder capital return initiatives is a notable exception. Secondly, treasury share cancellations aren't something that POSCO Holdings does regularly. In fact, the previous time PKX cancelled the company's treasury years was in 2004, or more than 18 years ago. Thirdly, POSCO Holdings' recent treasury share cancellation action needs to be viewed in the context of the company's overall shareholder capital return plans. In tandem with its treasury share cancellation announcement, PKX also disclosed that it will distribute a dividend per share of KRW4,000 for the second quarter of 2022. This means that POSCO Holdings' dividend payout has increased from KRW7,000 per share in 1H 2021 to KRW8,000 per share for 1H 2022. In summary, POSCO Holdings is clearly intent on returning a greater proportion of excess capital to its shareholders, as evidenced by the company's recent treasury share cancellation and increase in dividends. Moving away from corporate actions, I discuss about PKX's near-term business outlook in the subsequent section. Outlook For The Second Half Of 2022 The market's current expectations for POSCO Holdings as implied by consensus financial estimates indicate that the company's 2H 2022 results should be worse than its 2Q 2022 performance. As per consensus numbers taken from S&P Capital IQ, POSCO Holdings' revenue growth on a YoY basis is forecasted to moderate from +28.0% in the second quarter of 2022 to +11.3% and +8.3% for the third and fourth quarters of the current year, respectively. Also, PKX's YoY normalized earnings per share or EPS decline is projected to widen from -12.1% for Q2 2022 to -56.5% and -29.9% in Q3 2022 and Q4 2022, respectively.Seeking Alpha • Jul 25
POSCO Holdings net profit of KRW1.81T, revenue of KRW23.01T
POSCO Holdings press release (NYSE:PKX): Q2 Net profit of KRW1.81T. Revenue of KRW23.01T (+25.8% Y/Y).Seeking Alpha • Jun 20
POSCO: Focus On Both The Steel And Non-Steel Businesses
POSCO's core steel business faces headwinds in both the short-term and long-term. But PKX expects the non-steel businesses to account for half of the company's operating profit by 2030, with the new holding company structure expected to be a key driver. POSCO is a Hold; I am negative on the outlook for the steel business, but I am positive on PKX's diversification efforts and the growth potential of the non-steel businesses.Seeking Alpha • Apr 05
POSCO Looks Abnormally Cheap, Even Factoring In The Risks Of Empire-Building And Capacity Growth
POSCO management is pursuing an ambitious growth plan that would see the steel operations shrink to around half of total company revenue while generating significant growth from batteries and hydrogen. Management also has ambitious plans for steel capacity growth, including possibly entering the U.S. market with electric arc furnace plants. Even acknowledging the risks of high capex spending in pursuit of ambitious growth/diversification plans, the shares look oddly undervalued.Seeking Alpha • Jan 24
POSCO: Balance Sheet Trends By The Numbers
We recommended selling put spreads in POSCO in August last year. Our timing was off. Some investors may have been "put" stock as a result of our call. We evaluate the state of POSCO's balance sheet. Encouraging trends here should lessen the pain of an underwater position.Seeking Alpha • Nov 08
POSCO Stock Is Too Cheap To Ignore
We continue our international quest to find high-quality companies that are not overvalued, and find a promising idea in POSCO. POSCO is a very cyclical company, but it is well managed, pays a good dividend, and has some competitive advantages. We like that POSCO is creating a new business to provide materials for EV batteries.Seeking Alpha • Nov 02
POSCO: Market's Focus Is On Steel Prices And Chemical Business
POSCO's Q3 2021 earnings represent a new historical high, but its share price declined post-results given the negative short-term outlook for steel prices. Operating income for PKX's chemical business in Q3 2021 fell short of market expectations, but this does not affect the long-term growth outlook for this business. POSCO trades at a forward FY 2022 P/E of 5.2 times and a trailing P/B multiple of 0.48 times.Seeking Alpha • Aug 18
POSCO: Attractive Setup In The Steelmaking Giant
Earnings are expected to rise significantly in the steelmaker this year. These earnings in our opinion have yet to be priced into the share price. To control risk further though, I am looking to put on put spreads in here in the November cycle.Stability and Growth of Payments
Fetching dividends data
Stable Dividend: PKX's dividend payments have been volatile in the past 10 years.
Growing Dividend: PKX's dividend payments have increased over the past 10 years.
Dividend Yield vs Market
| POSCO Holdings Dividend Yield vs Market |
|---|
| Segment | Dividend Yield |
|---|---|
| Company (PKX) | 1.9% |
| Market Bottom 25% (US) | 1.4% |
| Market Top 25% (US) | 4.2% |
| Industry Average (Metals and Mining) | 1.5% |
| Analyst forecast (PKX) (up to 3 years) | 2.2% |
Notable Dividend: PKX's dividend (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: PKX's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (4.21%).
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (68.6%), PKX's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: PKX is paying a dividend but the company has no free cash flows.
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/07 10:53 |
| End of Day Share Price | 2026/05/07 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
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Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
POSCO Holdings Inc. is covered by 36 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Ephrem Ravi | Barclays |
| Bik Yun Lau | Bernstein |
| Kyung Jae Hwang | BofA Global Research |